Analyzing Pathfinder Bancorp (NASDAQ:PBHC) and Central Pacific Financial (NYSE:CPF)

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Central Pacific Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.7%. Pathfinder Bancorp pays out 66.7% of its earnings in the form of a dividend. Central Pacific Financial pays out 54.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Central Pacific Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Pathfinder Bancorp has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Central Pacific Financial has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

26.7% of Pathfinder Bancorp shares are held by institutional investors. Comparatively, 88.4% of Central Pacific Financial shares are held by institutional investors. 22.4% of Pathfinder Bancorp shares are held by company insiders. Comparatively, 2.7% of Central Pacific Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Pathfinder Bancorp and Central Pacific Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$46.56 million	1.72	$3.76 million	$0.60	28.35
Central Pacific Financial	$250.46 million	3.14	$53.41 million	$1.97	14.73

Central Pacific Financial has higher revenue and earnings than Pathfinder Bancorp. Central Pacific Financial is trading at a lower price-to-earnings ratio than Pathfinder Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pathfinder Bancorp and Central Pacific Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	4.28%	3.07%	0.26%
Central Pacific Financial	15.49%	12.03%	0.85%

Summary

Central Pacific Financial beats Pathfinder Bancorp on 11 of the 13 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

About Central Pacific Financial

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.